One band that was never upset with Napster during the early days was the Grateful Dead. Way before the Internet was popularized, they were already allowing a non-digital version of free music sharing. The band encouraged concertgoers to record their shows on tape and trade it with each other, allowing their Advocates to spread the word about the band. It sounds counterintuitive to how musicians make a living, but it fit in perfectly with the brand of the Grateful Dead who were in themselves, counter culture.
I interviewed David Meerman Scott, author of "Marketing Lessons of the Grateful Dead" at SXSW in the video below:

http://www.youtube.com/watch?v=wgyiMSihmYU

For other businesses bold enough to seek out alternative revenue streams, if you focus on a counter intuitive method you can break out and be successful.